On Tuesday, AUDUSD is looking pretty stable; it is trading sideways despite problems in Australia.
The Australian Dollar is stable against the USD on Tuesday. The current quote for the instrument is 0.6904.
Bushfires that continue in Australia are highly likely to do a lot of damages to the Australian economy. This may be seen as early as in January macroeconomic reports and reflect on statistics over the entire first quarter of 2020.
The only thing that prevents the Aussie from plunging is the first phase of the US-China trade agreement expected to be in the nearest future. according to preliminary information, it may happen as early as on Wednesday, January 15th. At least, this date was reported earlier.
The latest numbers from China are also helping the Aussie to reach stability. The Chinese Exports added 7.9% y/y in December after losing 1.3% y/y in the previous month, which is better than market expectations of +3.2% y/y. The Imports showed +16.3% y/y, which is much more than +0.5% y/y in November.
As a result, we can see that the Chinese economy greatly adapted to a “light version” of trade wars. However, it would be much better if there weren’t any trade wars at all.